Cotton rallies on technicals, weather concerns

By admin       2016-07-28

ICE cotton registered its biggest intraday percentage jump in nearly two weeks on Tuesday in technical follow-through as prices consolidated higher following a recent rally and the natural fibre market shifted focus back to weather concerns amid a weaker dollar.There was a bullish flag (pattern) in place. Prices have been consolidating over the last eight to nine sessions, trading in a fairly tight range," said Jim Lambert, director of sales at FCStone Merchant Services, adding that prices have now broken through that range to move upward.While West Texas has received moisture, it has not been widespread and the lack of rain, especially in key cotton producing counties, has offered some fundamental support to prices, Lambert said. The US Department of Agriculture said in its weekly conditions report on Monday that 52 percent of US cotton was in good to excellent condition, compared with 54 percent a week ago and 57 percent a year ago. Lambert said the report was supportive of prices but "could have been much worse." The December cotton contract on ICE Futures US remained unchanged from the previous session.

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